SAN DIEGO, Jan. 19, 2016 /PRNewswire/ -- Versant Commercial Brokerage, Inc. announced today that it has successfully recapitalized a 136 room Hampton Inn located in the Philadelphia PA suburb of Plymouth Meeting. Versant assisted the tenant-in-common investors by originating new senior debt, syndicating new capital for the mezzanine financing, and utilizing Internal Revenue Code Section 721 to roll up the TIC structure into an LLC on a tax-deferred basis.
Versant sourced bridge debt for this transaction with a national bridge loan lender. The new debt of $17,000,000 is interest only for three years with two one-year extension options. As part of the restructuring, the hotel will be undergoing a $3,250,000 property improvement plan to grow revenue, increase occupancy, and improve curb appeal. Versant successfully raised the additional capital from its group of investors. "This was a tough transaction due to the tax issues and the large amount of debt on the property," commented Matt Mueller, President of Versant. "We are relieved and delighted that the TIC investors are not going to lose their property."
Versant also restructured the tenant in common ownership structure into a new limited liability company pursuant to Section 721 of the Internal Revenue Code. This enabled to investors to continue to defer their capital gains and accrued depreciation.
The tenant-in-common investors brought in a new asset manager, sponsor, and hotel operator. The TIC investors selected Clear Vista Management as their new asset manager, Virtua Partners as the new sponsor, and Synergy Hospitality as the new hotel operator. "This was a complex process with many moving parts," said Quinn Palomino, Principal of Versant and Clear Vista. "Now that the transaction is closed, we are looking forward to improved operations and cash flow. Good management is the key to a successful hotel. We are excited to be working again with Synergy Hospitality, which is an innovative and experienced hotel operator. We expect to see strong results over the next few years."
About Versant Commercial Brokerage
Versant Commercial Brokerage, Incorporated is a commercial real estate firm that focuses on recapitalizing tenant-in-common owned properties. Versant specializes in providing high quality investment opportunities for individual investors by creating access to exclusive deals. Our professionals have consulted on over $3,000,000,000 of commercial real estate engagements.
Through a private network of investors, we provide debt and equity capital for commercial real estate projects. Our network of relationships, sophisticated analyses, and experience in deal structuring give us unique capabilities to place debt and equity for real estate projects nationwide.
Our investors obtain superior returns by directly investing in exclusive opportunities. We reduce costs by eliminating redundant financial intermediaries.
Please visit http://www.versantcre.com to learn more about our investor services.
SOURCE Versant Commercial Brokerage, Inc.